Lyft’s stock valuation remains low despite projected earnings growth and a turnaround under new leadership, analysts argue.
Lyft Inc. (LYFT) shares were priced at $14.42 as of May 1, trading at 9.2 times forward earnings. Analysts highlight the company’s expected earnings growth of 21%, 24%, and 12% over the next three years, alongside a operational turnaround led by CEO David Risher.
The company has regained market share in North America, stabilized its competitive position against Uber, and shifted from losses in 2023 to over $1 billion in free cash flow. Active riders and gross bookings have grown at double-digit rates, while EBITDA margins have expanded.
Despite these improvements, Lyft’s stock remains significantly below recent highs, reflecting investor skepticism about its long-term prospects.